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Home My WebLink About11 APPROP. LIMIT 97-98 08-18-97Inter-Com NO. 11 8-18-97 DATE: August 12, 1997 TO' FROM: SUBJECT: William A. Huston, City Manager Ronald A. Nault, Finance Director APPROPRIATION LIMIT FOR FISCAL YEAR 1997-98 RECOMMENDATION: me Select the change in the California per Capita Personal Income as the price factor for adjusting the 1997-98 appropriation limit. · Adopt Resolution 97-87 setting the appropriation limit for Fiscal Year 1997-98 at $32,576,620. FISCAL IMPACT: None· DISCUSSION: Article XIIIB of the State Constitution requires Cities to annually adopt a limit on appropriations for governmental funds. The basis of this limitation is the relationship between proceeds of tax and total appropriations. The base year was 1978-79, and the limit is allowed to grow based on the annual increase in population and U.S. CPI/California per Capita Personal Income, whichever is less. Proposition 111 was approved by voters in 1990 changing the base year from 1978-79 to 1986-87 and amending the adjustment formulas to make the Appropriation Limit more responsive to local growth issues. It also required a review of the Limit calculation as part of the annual audit process. Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years 1986-87 through 1997-98. Worksheets #1-7 go through the various calculations that are required in conformance'with the League of California Cities uniform guidelines for calculating the annual appropriations limit. Worksheet #6 goes through the steps necessary to calculate the current limit of $32,576,620. Worksheet #4 carries forward the proceeds of taxes from Worksheet #2 and compares them with the current year's limit from Worksheet #6. The result shows the City of Tustin is below its allowable spending limit for Fiscal 1997-98 by $11.3 million. Ronald A. Nault ~ Finance Director RAN:ts Attachments RAN6:AppLimi t.97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION 97-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 1997-98 IN ACCORDANCE WITH ARTICLE XIIIB OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, AND SECTION 7910 OF THE GOVERNMENT CODE The City Council of The city of Tustin does hereby resolve as follows: WHEREAS, Article XIIIB was added to the Constitution of the State of California at a general election held November 6, 1979; and WHEREAS, an annual appropriation limit must be determined for this City effective for the fiscal year beginning July, 1997; and WHEREAS, the appropriation limit must be adhered to in preparing and adopting this City's Annual Budget; NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve and order as follows: Section 1: In accordance with Article XIIIB of the Constitution of the State of California, and Section 7910 of the Government Code, and as set forth in detail in the Attached Exhibit "A", that the appropriation limit for the fiscal year beginning July, 1997 through June, 1998 is $32,576,620. Section 2: The appropriation limit shall not be exceeded in the adopted budget nor by any proposed amendment to the budget. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 18th day of August , 1997. ATTEST: Jeffery M. Thomas, Mayor Pamela Stoker, City Clerk RES: Res97- 87. Aug STATE OF CALIFORNIA DEPARTMENT OF FINANCE OFFICE OF THE DIRECTOR STATE CAPITOL, ROOM 1145 SACRAMENTO, CA 95814-4998 May 1, 1997 HAY- 5 i997 FINANCE DER'F. Dear Auditor/Controller/Fiscal Officer: This letter contains PRICE AND POPULATION INFORMATION for FY 1997-1998. APPROPRIATIONS LIMIT: The Department of Finance is mandated to provide population and California per capita personal income change data to local jurisdictions to use in calculating their app.ropriations limits. The enclosures contain price and population factors for setting your 1997- 1998 appropriations limit. These factors are effective for January 1, 1997 and were calculated on a base that excludes Federal and state institutionalized populations noted. Enclosure I provides the change in California's per capita personal income. An example of how to utilize this price factor and the population percentage change factor in calculating your 1997-1998 limit is included. Enclosures II and IIA provide population percentage change for cities and counties, and their incorporated areas. POPULATION FACTORS FOR SPECIAL DISTRICTS: Some special districts are required to establish appropriations limits. These districts should consult the state code for the various population factors that may be used for purposes of assessing change in population. Other districts are exempt under Article XIII B, Section 9(c). This letter may be received by sUch special districts. However, it should not be construed as a Department of Finance requirement to establish an appropriations limit. POPULATION CERTIFICATION: The certification program applies only to cities and counties. It is mandated that if a Department of Finance population estimate is greater than the current certified population, the Department shall automatically file a certified copy with the Controller not less than 25 days nor more than 30 days after completion of the estimate. The Department will certify the higher estimate unless it receives a written request not to. certify within 25 days of the completion of the estimate. A city or county requesting that their higher estimate not be certified will remain at the current certified population. The Department of Finance will not certify a population estimate that is lower than the current certified population unless requested to do so by a city or a county. The request to not certify must be received by the Department on or before June 1, 1997. Questions about population.should be addressed to the Demo~aphic Research Unit at (916) 323- 4086. Director Enclosures May 1, 1997 ' Enclosure I Ao Price FaCtor: Article XIII B specifies that local jurisdictions select their cost-of-living factor to compute their appropriation' limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage 'change in per capita personal income is selected, the percentage changes to be used in setting the 1997-98 appropriation limit are: Per Capita Personal Income Fiscal Year (FY) Percentage change over prior year 1997-98 4.67 Bo Following is an example using samPle population change and the change in California per capita personal income as growth factors in computing a 1997-98 appropriations limit. 1997-98: Per capita Change = 4.67 percent Population Change = 1.35 percent _ Per Capita converted to a ratio: 4.67 + 100 100 = 1.0467 Population converted to a ratio: 1.35 + 100 100 = 1.0135 Calculation of factor for Fy 97-98: i.0467 x 1.0135 = 1.0608 Enclosure II Annual Percent Change in Population Minus Exclusions* January 1, 1996 to January 1, 1997 and Total Population January 1, 1997 Total County Percent Change -- Population Minus Exclusions -- Population City 1996-97 1-1-96 1 '1-97 1-1-97 ORANGE ANAHEIM 0.50 293994 295452 295452 BREA 1.04 34892 35254 35254 BUENA PARK 0.25 72888 73072 73072 COSTA MESA 0.32 101529 101856 102574 CYPRESS 1.10 46517 47028 47028 DANA POINT 0.37 36077 36211 36211 FOUNTAIN VALLEY 0.64 54451 54797 54797 FULLERTON 0.35 122370 122804 122804 GARDEN GROVE 0.18 151764 152041 152041 HUNTINGTON BEACH 0.46 187664 188518 188518 IRVINE 1.42 126156 127949 129294 LAGUNA BEACH 0.97 23851 24083 24083 LAGUNA HILLS 19.41 25084 29954 29954 LAGUNA NIGUEL 1.16 55705 56353 56353 LA HABRA O. 17 54257 54351 54351 LAKE FOREST 0.08 57779 57828 57828 LA PALMA 1.40 15544 15761 15761 LOS ALAMITOS 0.41 " '~ 1539 11586 11661 MISSION VIE JO 1.98 90138 91922 91922 NEWPORT BEACH 1.13 69246 70030 70030 ORANG E 1.87 120043 122282 122282 _ PLAC ENTIA 0.96 45119 45550 45550 SAN CLEMENTE 1.23 46728 47305 47305 SAN JUAN CAPISTRA 2.11 29023 - 29635 29635 SANTA ANA 0.13 306571 306961 306961 SEAL BEACH 0.14 25736 25773 26360 STANTON 3.19 31964 32984 32984 TUSTIN 2.83 59101 60776 65287 VILLA PARK 0.89 6382 6439 6439 WESTMINSTER 0.47 82749 83141 83141 YORBA LINDA · 1.30 57782 58533 58533 UNINCORPORATED . 2.53 176277 180738. 185851 COUNTY TOTAL 1.07 2618920 2646967 2659316 · * Exclusionsinclude residentsin state mentalinstitutions, ~deral milita~ installations, and state and federalprisons. Page 1 EXHIBIT A City of Tustin Appropriation Limits Appropriations limit for base year ending June 30, 1987: (a) (b) (a)x(b) Per Capita Current P. Income Population Calculation Cumulative Fiscal Year Change Change Factor Factor $14,249,831 Amended Limit 1987-88 1.0347 1.01 99 1.0553 1.0553 1988-89 1.0466 1.0579 1.1072 1.1684 198990 1.0519 1.0238 1.0769 1.2583 1990-91 1.0421 1.0435 1.0874 1.3683 1991-92 1.0414 1.0273 1.0698 1.4639 1992 93 0.9936 1.061 5 1.0547 1.5440 1993-94 1.0272 1.0687 1.0978 1.6949 1994 95 1.0071 1.041 5 1.0489 1.7778 1995-96 1.0472 1.0508 1.1004 1.9563 1996-97 1.0467 1.0373 1.0857 2.1240 1997-98 1.0467 1.0283 1.0763 2.2861 $15,037,712 $16,649,726 $17,930,677 $19,498,380 $20,859,956 $22,001,129 $24,152,150 $25,333,061 $27,876,443 $30,266,623 $32,576,620 1997/98 Factors as reported by the State Department of Finance: 'Per Capita Personal Income Change over Prior Year: Population Change: City of Tustin 2.83% Recommend: Orange County 1.07% 4.67% '2.83% WORKSHEET Cf 1 User Fees Versus Cost Fiscal Year 97/98 Based on 1997/98 Budget Requests Program Community Services: 7010-Admin 7020-Sports 7030-Classes 7050-Sr Prog. 7060-Special 7070-Newport Ctr Fees Expenses $269 748 $368 325 $322 539 $243 542 $184,095 $140,556 $0 $246,140 $235,65O $97,314 $o $o Difference Tax/(Non-Tax) ($269,748) ($122,185) ($86,889) ($146,228) ($184,095) ($140,556) $579,104 $1,528,805 ($949,701) WORKS HEET #2 Calculation of Proceeds of Tax Fisnal Year g7/98 Based on 1997/98 Budget Requests Page 1/4 0lO-General Fund 020-ClP 030-GCAQMD 040-Asset Forfe~ure Acct# Reve~ue Source Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds 31xx Property Taxes $3,588,500 32xx Franchise Fees $1,043,600 Other Taxes: 3330 Sales $13.970,000 3331 Business $260,000 3332 TOT $100,000 3333 Real Prop.Transfer $144,0OO 3334 New Consl?dctlon $5,600 3336 Blclg Perrnlts-E T $583,767 3337 Pin C~ Fees-E T $400,980 3338 New Construction Tx'-E T $192,450 License/Pe~mis $468,500 Fines ./Forfeitures $440,600 3660 Inlerest Use of City Properly $65,200 3771 POST Reimbursement' $3,500 3772 MVIL $2.525,000 3773 Homeowners Prop Tx $70,000 Asset Fodeltures State Mandates $45,000 $70,000 3884 State Grants-SB821 $15,000 3881 State Gzants-Oth~ 4115 Federal Grants $20,000 $67,000 4118 RNSP Reimbursement $40,000 4117 County Grants $0 4440 Finger Printing $7,700 4441 · Planning/Subdivision Fees $70,000 4444 Sale o! Plans/Maps $6,000 4449 Sports Fees $246,140 4450 Class Fees $235,650 4451 Youth Fees $0 4452 Senic~ Programs $97,314 4454 False Alarm Fees $18,000 4455 Special Police Services $47,100 4456 DUI Co~t Recovery $5.000 4458 Witness Fees $2,400 4463 Jury Duty $0 4464 Fire Plan Check $2.000 4467 Police Security Services $12,000 4468 Sports Park Concession $12,000 4469 Court Mason Fees $15,000 4735 State Rev-Abandoned Veh $5,000 474x RecovmT-Traffic Sig Darng $0 4765 Seismic Revenue $500 47xx Transfers In $2,540,009 $0 4770 Sale of Cry Property 4772 Sale of Unclaimed Property $10,000 4786 Recovery of Expense $25,000 $0 4789 Developer Sham/Projects $0 4911 Fed-USDA Lunch Program $22,000 4687 Nusance Abatement $0 4885 PERS Credit $0 8466 Prop T~ Colbction Fee ~60,000) Misc $0 $52,900 $0 Sub Total $20.795,550 $6,557,860 $0 $0 $0 $67,000 $0 $70,000 Interest Earnings $0 $0 Total Revenue: $20,795,550 $6,557.860 $0 $0 $0 $67,000 S0 $70,000 ,353,410 Sub Total: $0 Sub TcRal: $67,000 Sub Total: $70,000 Interest by Fund: $226,000 $200,000 . $8,000 . ~$50 000 Fund Total: $27,579,410 Fund Total: $200,000 Fund Total: $75,000 Fund Total: $120,000 · WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 96/97 Based on Budget Projections foe 1996-97 Page 2/4 045-Pub Safety Augm 060-MCAS Closure 080-CDBG 090-Measure "M" T Acc't# Revenue Source Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds From T,~xes: 31 xx Property 3330 Sales $172,000 3331 TOT 3332 Business 33xx Other From State: 3771 POST Reimbursement 3772 Mc~or Vehicle In Lieu 3773 Homeowner Sub. 3881 State Grants 3884 SB 821 4119 SCAQMD 3785 Asset FoHelture 3330 Pub. Saf~y Augment. 38xx Measure 'M,-T/Comp. $662,000 39xx Gas Tax Other Fr~m ot~er Governments: 4333 CDBG $1,539,853 4334 MCAS Cbsure $308,700 Other Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other Miscellaneous: $469,491 Sale of Property Interfund Transfers Sub Total: $0 $172,000 $0 $308,700 SO $1,539,853 $0 $1.131,491 Interest Earnings Total Revenue: $0 $172,000 $0 $308,700 SO $1,539,853, $0 $1,131,491 ..................... qAA ~ i ~ · ,_ ,1~ ~"AA A["A ~w~..L T_.l._l. ~.~ .~,~ JAm Sub Total: $172,000 Sub Total: $308,700 Sub Total: $1,539,853 Sub Total: $1,131,491 Interest by Fund: $10,000 $15,000 $37,200 Fund Total: $182,000' Fund Total: $323,700 Fund Total: $1,539,853 Fund Total: $1,168,691 WORKSHEET #2 Calculation ot Proceeds of Tax Fiscal Year 96/97 Based on Budge~ Projections foe 1 ggs-g7 Acct# Revenue Source From Taxes: 31xx Property ~0 Sales 3331 TOT 3332 Business · 33xx Other From State: 3771 POST Reimbursement 3772 Motor Vel31c~e In Lieu 3773 Homeowner Sub. 3881 State Grants 3884 SB 821 4119 SCAQMD 3785 Asse~ Forl'eiture 3330 Pub. Saf~y Augment. 38xx Measure 'M".-T/Comp, 39xx Gas Tax From other Governments: 4333 CDBG 4334 MCAS Cbsure Other Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 3$xx Demloper Fees 35xx Fines & Forfeitures User Fees Other Miscellaneous: Sale of Property ~~~T~~L~ ,Interlu nd Transfers Sub Total: Interest Earnings O95-Measure "M" C 100-Gas 110-Park Der Proceeds N on-Proceeas Proceeds Non-Proceeds Proceeds Non-Proceeds $2,0~,000 $1,223,500 $5,500,000 Interes~ by Fund: $6,500 $1,000,000 Page 3/4 Proceeds N on-Pro<~eds I $~a,45ol S0 $7,596,0001 $0 $1,223,500I ' ' --'---I "" eVl$0 S1,1 98,9501 $0 $0 J .... ,0. 7 5_~_ 000 0 1'223'500 ..~ _.$_,0 $! !97950 0 0 $o $52 o0o .~ nnn Fund Total: $7,596,000 '~~ $0 WORKSHEET #2 Calculation o! Proceeds of Tax Fiscal Year 96/97 Based on Budge~ Projections foe 1996-97 Page 4/4 490--~t Light Dist 530-Landscape/Lighting 850-Unemployment 046-~upp. Law Enforce. Ac, ct# Revenue Source Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds From Taxes: 31xx Property $416,100 3330 Sales 3331 TOT 3332 Business 33xx ~r From State: 3771 POST Reimbursement 3772 Motor Vehicle In Lieu 3773 Homeowner Sub. 3881 State Grants $148,000~ 3884 SB 821 4119 SCAQMD 3785 Asse~ Forfeiture 3330 Pub. Safe(y Augment. 38xx Measure 'M'--T/Comp. 39xx Gas Tax From other Governments: 4333 CDBG 4334 MCAS Cbsure Other Locally Raised: Special Benefit Assess. $392,400 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other ($5,200) $1,500 ($1,2751 $ 53.000 Miscellaneous: Sale of Property Interlund Translers Sub Total: $410,900 $1,500 $0 $391,1 25 $0 $53,000 $0 $148,000 Interest Earnings Total Revenue: $410,900 $1,500 $0 $391,1 25 $0 $53,000 $0 $148~000 SuD Total: $412,4C Interest by Fund: 3000 Fund Total: $412,400" $391,1 25' $53,000" $151,000 ' Grand Totals: Total All Interest: Proceeds: Non Proceeds: Total: $681,200 $21,206,450 $20,458,979 $41,665,429 $346,710 $334,490 $681,200 $21,553,1 60 $20,793,469 $42,346,629 WORKSHEET Cf 3 Interest Earnings Produced by Taxes Fiscal Year 97/98 Based on Budget Projections for 1997-98 A. Non--Interest Proceeds of Taxes B. Minus Exclusions C. Net Invested Taxes D. Total Non-Interest Proceeds and Non-Proceeds of Taxes E. Tax Proceeds as % of.Total proceeds. F. Total Interest Earnings G. Amount of Interest Earned from Taxes. H. Amount of Interest Earned From Non-Taxes. Amount Source $21,206,450 From worksheet Cf 2 $0 From worksheet Cf 7 $21,206,450 (A-B) $41,665,429 From worksheet Cf 2 50.90% (C/D) $681,200 From worksheet Cf 2 $346,710 (E'F) $334,490 (F-G) WORKSHEET Cf 4 Appropriations Subject to Limit- Fiscal Year 97/98 Based on Budget Projections for 1997-98 Amount Source A. Proceedsof Taxes $21,553,160 From worksheet Cf 2 B. Exclusions $0 From worksheet Cf 7 C. Appropriations Subject to Limitation D. Current Year Limit $21,553,160 $32,861,741 (A-B) From worksheet Cf 6 E. Oved(Under) Limit ($11,308,581) (C-D) WORKSHEET Cf 5 Population Increases Fiscal Year 97/98 Based on Budget Projections for 1997-98 To Compute Limit To: City County Population Increase Population Increase 1994-95 1995-96: 1/1/93 52,818 1/1/94 55,012 4.15% 1/1/94 55,053 1/1/95 57,849 5.08% 2,540,452 2,582,051 2,583,6O8 2,627,949 1.64% 1.72% 1996-97: 1/1/95 56,821 1/1/96 58,940 3.73% 2,583,745 2,610,959 1 .O5% WORKSHEET Cf 6 Appropriations Limit Fiscal Year 97/98 Based on Budget Projections for 1997-98 A. Last Years Limit B. Adjustment Factors 1. Population 2. Price Factor Total Adjustment C. Annual Ajustment D. Other Adjustments: Amount Source $30,266,623 From Exhibit A 1.0373 Dept of Finance 1.0467 Dept of Finance 1.08574191 (BI*B2) $2,595,118 (B'A) Sub Total E. Total Adjustments $0 $2,595,118 (C+D) F. Current Years Limit $32,861,741 (A+E)